SEC Asks Judge To Pull Plug On Alleged Fraudster

Law360, New York (October 6, 2010, 11:38 AM EDT) -- The U.S. Securities and Exchange Commission is seeking a temporary restraining order and asset freeze against New Jersey-based investment advisory firm CGC Advisors LLC and principal Carlo Chiaese, who has surrendered to authorities on charges that he used client funds to fuel a life of luxury.

Chiaese told investors that their money was being safely held at a broker-dealer, when in fact he kept as much as $2.5 million for his personal use, the SEC argues in a complaint filed in the U.S. District Court for...